Financial Markets and Institutions (2-downloads)

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Q U E S T I O N S

1. What basic principle of finance can be applied to the

valuation of any investment asset?

2. Identify the cash flows available to an investor in

stock. How reliably can these cash flows be esti-

mated? Compare the problem of estimating stock

cash flows to estimating bond cash flows. Which secu-

rity would you predict to be more volatile?

3. Discuss the features that differentiate organized

exchanges from the over-the-counter market.

4. What is the National Association of Securities Dealers

Automated Quotation System (NASDAQ)?